Vetapalem

Affordable Housing for the urban middle class has been engaging the attention of the Government for quite sometime. Various schemes currently underway such as urban permanent Housing, VAMBAY, etc are for particular social strata. New schemes like JNNURM, IHSDP are also recently introduced for the urban poor.

Hence the focus of the Government shifted towards the urban middle class with moderate income who could not afford housing due to sky rocketing of land prices and construction costs. Therefore announcement of Rajiv Gruhakalpa phase  II and later on rechristened as Rajiv Swagruha to be implemented throughout the state in all the municipalities and Municipal Corporations. Efforts will be made to make the flat / house available to urban middle class at a cost which is 25% less than the open market rate of the area along with the best quality construction and full infrastructure facilities and amenities etc.

Demand has been registered for 3196 double bed roomed flats and 1168 single bed roomed flats in the year 2007 from 21.03.2007 to 10.04.2007. These flats are for more spacious yet affordable by the moderate income group earning between Rs.6000 to Rs.50000 per month. (See customer database)

By laying the foundation stone for the first project Aarambh on 20.01.2007. The project was launched for 1140 flats in two sizes of flats: Single Bed room (464 Sft) and Double Bed room (685 Sft). Later on sizes were increased to 486 Sft and 697 Sft in order to reduce the proportion of common space vis-

Later on the scheme was improvised further by adding two more categories of flats and named as Rajiv Swagruha. It is a self financed, demand driven a unique and innovative first of its kind scheme for providing an affordable housing to moderate income families which is under implementation by the APRSCL throughout all the urban areas of AP.

AARAMBH  CHANDANAGAR - SCHEME DETAILS:

SITE LOCATION: The site is located at Serilingampally division of Greater Hyderabad Municipal Corporation

 Plinth areas have been increased to have more functional utility and reduce proportion of the common space

 464 Sft flat revised to 486 Sft and 685 Sft to 697 Sft

 Huge land filling done to avoid seepage and dampness in the long run.

 Compound wall has been constructed to have proper security and safety.

 Normal tiles have been replaced with edge cut tiles.

 Storm water drains have been constructed with pipes

 Construction of retaining walls for different levels

 Pathways interlocking tiles

 Green corridors to give check pollution

 Black topping roads have been replaced with Cement Concrete

Energy conservation electrical street light fittings etc.

 Since some items were not provided in the original estimate that are actually required and hence mid course correction

ELIGIBILITY:

 No house affidavit either in his / her name or immediate families name in the Municipality where flat is applied for

 Monthly income of the applicant should be in the range of Rs. 6,000/- to 50,000/-

FINANCING PATTERN: (self financed)

 The allottee has to contribute initially a minimum of 25% of the cost of the flat after allotment i.e. Rs. 1,65,000 for the single bed room and Rs.2,42,500 for the double bed room (since amended)

 75% may be loan from Financial institution to be paid as per schedule by the applicants

 APRSCL is a facilitator for introducing the applicants to the Banks per their request

 SBI is the Bank for loans to applicants

 The title of the flat ownership will be mortgaged with the Financial Institution that will have the right of recourse. The title will be transferred to the owner after the financial institution dues are fully cleared by the allottee

COST:

b><="" b="">

 The tentative cost of these flats was Rs.7.00 lakhs and Rs.10.30 lakhs which was revised after construction to Rs.7.95 lakhs and Rs.12.20 lakhs respectively only for old allottees.

REASONS FOR REVISION:

1. Increase in flat area from 464 to 486 Sft. for Single Bed Room and from 685 Sft. to 696 Sft. for Double bed room flat to have more functional areas.

2. The site was totally undulated with boulders projecting on site and ditches caused due to carting away of earth. Leveling was done

3. The site is on the down stream of a lake. The soil met with was loose and there was constant seepage of water. Due to this foundation had to be strengthened which consumed more cement and steel.

4. Specifications for tiles were changed.

5. Additional items like paver tiles for pathways, water proofing of the terraces, construction of retaining walls, lightening arresters, generator backup for lifts which were not contemplated originally had to be taken up.

6. There is increase in cost of Municipal water supply and electrical line charges.

7. The common septic tank was originally contemplated considering the requirements of Rajiv Swagruha and Rajiv Gruhakalpa. As the levels do not permit construction of single tank, two separate tanks have become necessary.

8. In the earlier estimates no provision was made for obtaining municipal permissions for which fee etc has to be paid.

9. The compound wall was subsequently taken up to ensure security and safety to habitants etc.

10. Attempt is being made to provide approach road to the colony directly from old Bombay high way is thought in order to add value to the asset and quality in the living of all people with the provision of a gate.

11. Cost of additional land.

ANALYSIS OF THE COST IN LOCAL OPEN MARKET:

The market survey conducted in that area shows that the prevailing market rate is Rs. 2500/- per Sft. This rate is excluding water supply, electricity and other taxes. If the cost of these amenities are added, the actual selling price by the private builders work out to Rs. 2683/Sft.

 The cost flat of 486 Sft is Rs.13,03,938.00 and 697 Sft flat Rs.18,70,051 in the open market

· Pl See the comparative statement of costs

HOW RAJIV SWAGRUHA IS CHEAPER

 The final cost of flat is Rs.1635 per Sft for single bed room and Rs. 1750 per Sft for double bed room including all. There is no hidden cost.

 The Government while sanctioning Rajiv Swagruha programme gave a mandate of provision of houses at cost 25% less than the prevailing market value on similar specifications.

 Considering the prevailing market value and the revised value for Rajiv Swagruha Aarambh allottees the difference works out to 39.04% to 34.77% i.e. more than 25%.

 Since Chandanagar is the first project and the income levels of these applicants are low comparatively, the value is fixed as Rs.7.95 lakhs for single bed room flat which works out to Rs.1635 per Sft and Rs.12.20 Lakhs for double bed room flat which works out to Rs.1750 per Sft all inclusive for old applicants.

1. The applicant should pay Rs. 5000/- as registration fee and Rs. 250/- as application fee both non refundable.

2. The applicant should pay 15% cost of the flat at the time of booking and block the flat. The same will be reserved.

3. Balance 10% cost of the flat to be paid within one month from the date of booking.

4. the payment of balance 75% cost of the flat within 2 months from the date of booking.

5. The total 100% should be received within two months.

6. 15 days grace period is allowed on payment of the penal interest@ 18% p.a.

7. If the applicant fails to make the payment or withdraws from the scheme within 2 ½ months (75 days) from the date of booking, the allotment will be cancelled besides forfeiture of 10% of the cost of flat, the balance deposit will be refunded when the scheduled property is sold to a third party.

INCENTIVE POLICY:

· The applicant can choose the flat of their choice if they make full (100%) payment lump sum

· Applicant paying 50% of the cost of the flat lump sum can choose the floor of his / her choice

COSTRAINTS:

· First project

· Not transferring approximately Rs.13.00 Crores project money collected from the applicants by APHB so far

· Abnormal increase in cost of steel and cement during execution

· Court litigation by few applicants

· Absence of payment of installments on schedule resulting in raising Bank loan